Company Formation in Romania
Starting a company in Romania gives you access to the EU market, competitive tax rates, and a fast incorporation process. You can register a limited liability company (SRL) in just a few days with a relatively low share capital and straightforward procedures.
How to Open a Company in Romania
Opening a company in Romania is relatively straightforward: you choose a legal form (most often an SRL), reserve your company name, prepare incorporation documents, and register with the National Trade Register Office (ONRC). However, the bureaucracy can sometimes be harsh, with formal documentation requirements, Romanian‑language filings, and occasional delays when registrars request additional clarifications or documents, so having local support can save time and stress.
Our company provides the best step by step guide on how to open your company in Romania.
Here is a simplified guide on how to open a company in Romania :
- Choose the legal form (most often SRL for limited liability).
- Reserve the company name at the Trade Register.
- Draft the Articles of Association and sign incorporation documents.
- Provide a registered office address in Romania.
- Deposit share capital in a Romanian bank (for SRL).
- File incorporation with the Trade Register and obtain the registration certificate and tax ID.
- Register for VAT if required (see VAT section below).
PFA vs SRL (SRL vs PFA)
A PFA (Persoana fizica autorizata) is a sole freelancer‑type structure( mostly like a Self-Employed in the UK) , while an SRL is a separate legal entity with limited liability. (Limited in the UK or LLC in the USA)
| Aspect | PFA in Romania | SRL in Romania |
|---|---|---|
| Legal status | Individual (no separate legal entity) | Separate company with its own legal personality |
| Liability | Owner personally liable with own assets | Liability limited to company share capital |
| Typical use | Freelancers, small professional services | Startups, SMEs, foreign investors, scaling firms |
| Accounting | Simplified accounting, fewer formalities | Double‑entry accounting, annual financial statements |
| Perception | Suited for self‑employment | More corporate image, better for partners/banks |
In short, PFA is usually better for very small, personal activity, while SRL(LTD) is preferred for growth, partners, and risk protection against unknowns.
VAT Registration in Romania
If your Romanian business exceeds the annual turnover threshold or carries out certain intra‑EU transactions, VAT registration becomes mandatory. You can also opt for voluntary VAT registration to recover input VAT on purchases even below the threshold.
Romania VAT registration is required when your business exceeds the national turnover threshold or carries out specific taxable activities, and you can also apply voluntarily to reclaim input VAT and trade within the EU more efficiently.
Our team assists with romania vat registration, full vat registration in romania for local and foreign entities, and ongoing compliance after vat registration romania, including preparing documents, submitting forms to ANAF, and managing your periodic VAT returns
Once registered, your company must charge VAT on taxable supplies, file periodic VAT returns, and keep compliant VAT records in line with Romanian and EU rules.